To Yeo, the Perth acquisition supports Centurion’s strategy to move into developmental projects and grow them into mature assets before monetising them. However, the project is scheduled to be completed in December 2027 and as such, any contributions are likely to come in from 2028 onwards.
That said, Yeo believes the contributions — to be parked under joint ventures and associates — are not likely to be significant.
The analyst has maintained his “buy” call as the company’s new growth focus on property development, REIT management for Centurion Accommodation REIT (CAREIT) and acquisitions remains intact.
“Centurion’s remaining assets (which have not been spun off to CAREIT) will continue to drive growth, with improved occupancy, bed capacity expansion (especially in Malaysia), and asset enhancement initiatives (AEIs),” he adds. “It will look to make strategic acquisitions including in the Middle East and receive new REIT management fees from third-party asset owners and CAREIT to supplement growth.”
See also: CAREIT an ‘attractive diversification play’ with ‘decent’ yields, says RHB in unrated report
As at 4.07pm, shares in Centurion are trading 2 cents lower or 1.54% down at $1.28.
